Exhibit 11
Cincinnati Financial Corporation
Statement Re-Computation of Per Share Earnings
(Dollars in millions except share data) | Three months ended March 31, | |||||||||
2003 | 2002 | |||||||||
Numerator: | ||||||||||
Net income — basic | $ | 57 | $ | 75 | ||||||
Effect of debentures | 0 | 0 | ||||||||
Net income — diluted | $ | 57 | $ | 75 | ||||||
Denominator: | ||||||||||
Weighted-average common shares outstanding | 161,145,558 | 161,768,559 | ||||||||
Effect of: | ||||||||||
Stock options | 833,318 | 1,351,361 | ||||||||
Debentures | 0 | 238,935 | ||||||||
Adjusted weighted-average shares | 161,978,876 | 163,358,855 | ||||||||
Earnings per share: | ||||||||||
Basic | $ | 0.35 | $ | 0.47 | ||||||
Diluted | $ | 0.35 | $ | 0.46 | ||||||
Anti-Dilutive Securities
Options to purchase 3,199,472 shares of the company’s common stock with exercise prices ranging from $36.19 to $45.37 per share were outstanding at March 31, 2003, and 954,060 shares with exercise prices ranging from $39.88 to $45.37 per share were outstanding at March 31, 2002. The shares were not included in the computation of diluted earnings per share for the three-month periods ended March 31, 2003 and 2002, since inclusion of these options would have anti-dilutive effects, as the options exercise prices exceeded the respective average market prices of the company’s shares.
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